USDC market cap nears $80 billion as UAE capital flight fuels demand

The market capitalization of stablecoin USDC is nearing a record high of $80 billion as demand in the Middle East surges, and one analyst attributes the surge to capital flight from the United Arab Emirates.

According to CoinMarketCap, the circulating supply of USDC (USDC) has increased to nearly $79.2 billion, an all-time high for the dollar’s stable performance. The stablecoin’s market capitalization previously reached a high of $79 billion in December last year.

The increase comes after supplies have surged by billions of dollars in recent weeks. The stablecoin market capitalization was just over $70 billion at the beginning of February and $75 billion at the beginning of this month.

Rami Al-Hashimi, who identifies himself as a Dubai analyst, claimed that the increase reflects the growing demand from investors who want to move funds out of traditional markets. In a Friday post on X, Al-Hashimi said over-the-counter (OTC) exchanges in Dubai are struggling to meet demand for the stablecoin.

related to: Stablecoins could form the basis of global payments in 10 years: Billionaire

Decline in Dubai property may lead to USDC rise

Al-Hashimi attributed the surge in demand for stablecoins to turmoil in the UAE real estate market. Property prices in Dubai have fallen by around 27% this month, prompting a rush by investors to shift capital into digital assets, the analyst claimed.

“War panic. Capital flight. Sellers bleeding,” he wrote, describing what he said was a rapid shift in investor behavior.

Data from TradingView also shows that the DFM Real Estate Index, which tracks the performance of real estate and construction companies in Dubai, has seen heavy selling, with the index falling from around 16,800 at its recent peak to 11,516, a drop of about 31%.

Al-Hashimi claimed that this situation has also led some property sellers to directly accept cryptocurrency payments. He said some real estate listings are now advertising discounts for buyers who pay using Bitcoin (BTC).

“Pay with BTC, get a 5-10% discount,” he wrote, adding that the trend reflects growing demand for digital assets in times of financial uncertainty.

related to: Crypto Biz: Circle Stocks Confront Wall Street and Sell Digital Assets

USDC outperformed USDt in adjusted transaction volume

Japanese investment bank Mizuho says USDC overtook Tether in adjusted transaction volume for the first time since 2019. According to the bank’s research note, USDC recorded about $2.2 trillion in adjusted transaction volume during the year, while USDC accounted for about $1.3 trillion for USDt, a share of about USDC.